Detention Billing and Opportunity Cost
What a shipper owes for holding your truck, and what the delay actually cost you.
Example
You enter
- Free time (hr) 2
- Actual time at facility (hr) 5
- Detention rate ($/hr) 50
- Truck revenue on road ($/hr, optional) 80
You get
- Detention hours 3.0 hr
- Billable detention $150.00
- Opportunity usd 240
Checked against published worked examples from: OTR Solutions (K. Hodges).
Details, formula, and sources
ScopeChargeable hours = max(0, actual - free), charge = hours x rate, opportunity cost = hours x on-road revenue/hr. 2 hr free, 5 hr actual, $50/hr, $80/hr truck -> 3 hr, $150 billed, $240 lost (the charge does not cover it). Within free time, nothing bills. The carrier tariff and rate confirmation govern.
Formula or tabledetention_hours = max(0, actual - free); billable = hours x rate; opportunity = hours x on-road revenue/hr.
Source and editionDetention/demurrage billing from carrier tariff and rate-confirmation practice, by name.
Free accessThe chargeable-hours and opportunity-cost arithmetic is public; the free time, rate, and terms come from the carrier tariff and the rate confirmation.
What governsEstimate. AHJ and licensed professional govern.
API field namesfree_hours, actual_hours, rate_usd_hr, truck_rev_usd_hr, detention_hours, billable_usd, opportunity_usd
- Chargeable hours max(0, actual - free); charge = hours x ratecarrier tariff practice
- Opportunity cost hours x on-road revenue per houroperating economics
- Terms govern the tariff and the rate confirmation set the collectible chargescope of this tile